Brothers charged in money laundering, goods-fencing scheme

November 21, 2010

Two brothers affiliated with a Northwest Side merchandise distributor have been charged in an alleged money laundering and goods-fencing scheme involving more than $100,000 in stolen goods, authorities said.

His older brother, however, was kept in jail Saturday because his U.S. passport was apparently missing, raising the potential for an escape from the country if he were released on bail because authorities weren't sure whether he had the document somewhere else.

Smith, denying that Patel presented a flight risk, said in court on Saturday that the passport may have been confiscated by police.

The investigation started in July and included six recorded meetings from August and November between the men and undercover investigators, prosecutors said today. The men brokered deals with the investigators to exchange and sell stolen merchandise, prosecutors said, and that they captured on videotape admitting they knew the goods were stolen.

During the first five undercover sales, the brothers allegedly paid a total of $3,850 for products worth nearly $14,500. The products included laundry detergent, shampoo and energy drinks.

They were arrested Tuesday when investigators drove a semitrailer truck full of merchandise that had been borrowed from cooperating retailers. The truck contained more than $100,000 worth of goods, including laundry detergent, batteries and razors. The brothers allegedly purchased the contents of the truck for $22,000.

As part of the investigation, authorities obtained search warrants for the brothers' homes and the warehouse. Authorities also confiscated more than $4.5 million in cash, some of it stuffed in duffel bags, suitcases and bank safety boxes.

Prosecutors said Saturday officers collected so many things in their investigation that they weren't immediately sure whether they had the passport. Judges often order passports taken from criminal defendants on bond to prevent them from fleeing the country.

An irritated Smith said he expects Vijay Patel back in court Monday morning, when he hopes the passport will have been located.